Slide 1: 1st Quarter 2012 Financial Results
1st Quarter 2012 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 28 May 2012
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This material is prepared for general circulation. Any recommendation or view contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific audience. The content furthermore is believed t
Slide 3: Agenda
AGENDA Key Corporate Updates 1st Quarter 2012 Financial Results Key Business Highlights To Sum Up
Slide 4: Key Corporate Updates (1/2)
Key Corporate Updates (1/2) 1 Proposed Merger with OSK Investment Bank Obtained approval from MOF through BNM on 27 April 2012 Signed CSPA today Target to complete by 4th quarter 2012 2 Proposed Acquisition of Bank Mestika Approval from Bursa Securities on Proposed Rights Issue lapsed on 19
Slide 5: Key Corporate Updates (2/2)
Key Corporate Updates (2/2) 4 Board and Management Appointment of Datuk Wira Jalilah Baba as Independent and Non-Executive Director of RHB Capital effective 1 May 2012 5 Awards RHB Now - Best Security Initiative category by Asian Banking & Financial Retail Banking Awards 2011 RHB Investment Ma
Slide 6: RHB Banking Group Financial Report Card
RHB Banking Group Financial Report Card RHB Banking Group Scorecard 2012 Top level indicators Target 2012 Q1 2012 Achievement ROE >14.0% 14.7%N1 ROA 1.2% 1.1%N1 Gross Impaired Loans 3.0% 3.6% Ratio Loans Growth >12% -2.0%N2 Deposits Growth >12% 1.2%N2 Cost to Income Ratio <44% 45.2% International Co
Slide 7: Agenda
AGENDA Key Corporate Updates 1st Quarter 2012 Financial Results Key Business Highlights To Sum Up
Slide 8: Key Take-Aways Q1 2012 Results
Key Take-Aways Q1 2012 Results Pre-provisioning operating profit at RM630 mil, up 4% y-o-y PBT was 5% lower at RM581 mil and net profit down by 5% to RM436 mil, mainly due to restatement of MFRS 139 for Q1 2011 results. Excluding this, Q1 2012 PBT up 14% and net profit up 14% y-o-y Q1 2012 Resul
Slide 9: Financial Results
Financial Results Y-o-y, net interest income higher by 2% due to 12% Y-o-Y Q-o-Q Q1 Q1 Q4 increase in interest income, offset by 23% increase in RM mil Change Change 2012 2011N1 2011N1 interest expense. % % Net Interest Income 709 698 2 725 -2 Higher other operating income mainly due to higher n
Slide 10: Key Underlying Profit Drivers
Key Underlying Profit Drivers Net Interest Income (2%) Other Operating Income (24%) RM mil RM mil 709 330 267 698 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Net interest income higher by 2% driven mainly by higher interest Higher other operating income mainly due to higher net FX gain, from loans by 12% on the
Slide 11: Contribution By Strategic Business Group
Contribution By Strategic Business Group Revenue Global Islamic CIB Financial 7% 15% Banking Treasury Business 4% 16% Banking Business 14% Retail Global Banking 44% Financial 16% Banking 5% Islamic CIB Retail 7% 18% 43% Treasury 11% Q1 2011 Q1 2012 Pre-tax Profit Global Business Business Financial B
Slide 12: Balance Sheet Stable
Balance Sheet Stable Total assets increased by 1% to RM155 bil Change RM mil Mar 2012 Dec 2011N1 mainly due to higher securities portfolio, offset by % a lower gross loan base by 2% to RM96 bil Total Assets 154,829 152,628 1 Financial assets HFT and HTM increased mainly Total Financial Assets/In
Slide 13: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Y-o-Y RM mil Mar 2012 Dec 2011N1 Mar 2011N1 Change Change % % Working Capital 19,991 20,360 21,912 -2 -9 Purchase of Residential Property 20,817 20,604 19,527 1 7 Purchase of Non-Residential Property 5,202 5,282 4,876 -2 7 Purchase of PPE Other Than 3,137 3,241 3,
Slide 14: Loans and Advances by SBG
Loans and Advances by SBG Q-o-Q Y-o-Y RM mil Mar 2012 Dec 2011N1 Mar 2011N1 Change Change % % Retail 40,954 40,688 37,825 1 8 of which: Easy 3,894 3,323 2,030 17 92 Business Banking 10,611 10,519 10,392 1 2 CIB 26,210 28,788 25,996 -9 1 Islamic 13,373 13,060 9,612 2 39 Global Financial Banking 4,381
Slide 15: Loans Profile
Loans Profile Composition of Loan Book - Composition of Loan Book - by Type of Customer by Interest/ Profit Rate Sensitivity 2% 1% 1% 7% 5% 6% 6% 6% 7% 5% 11% Fixed Rate 12% 12% 33% Variable Rate 36% 34% 28% 67% 27% 26% 24% 16% 13% 12% 15% 17% 12% Composition of Loan Book - by Strategic Business Gro
Slide 16: Customers Deposits
Customers Deposits Customers Deposits Customers Deposits : Composition Q-o-Q Y-o-Y Mar Dec Mar 100% RM mil Change Change 5% 6% 2012 2011 2011 % % 90% Fixed Deposits 89,067 87,946 72,616 1 23 19% 18% 80% of which: MMTD 19,763 23,259 25,525 -15 -23 70% Demand Deposits 21,396 21,436 19,922 - 7 20% 17%
Slide 17: Loans and Deposits
Loans and Deposits Loans Customers Deposits RM bil 20% RM bil 16% 9% 13% 10% 12% 32% 23% 15% 19% 13% 14% 9% 12% 11% 11% 7% 1% 8% 14% 14% 9% 7% 97.4 95.5 -2% 117.3 83.7 115.9 63.2 69.6 84.8 94.4 56.8 75.8 74.0 2007 2008 2009 2010 2011^ Mar 2012* 2007 2008 2009 2010 2011 Mar 2012* Gross Loans Loans Gr
Slide 18: Capital Position (1/2)
Capital Position (1/2) RHB Bank RHB Islamic Bank RM bil RM bil 17% 15% 15.0% 15.8% 14.0 14.0% 14.6% 14.0% 12.9% 13% 12.7% 12.7% 13.0% 1.5 11.8% 11.9% 12.0 12.3% 13% 11.4% 11.5% 11.5% 1.3 1.3 11% 10.5% 10.8% 10.8% 10.0 9.9% 9.3 9.3 9.4% 9% 8.4 8.4 9% 7.9 1.0 8.0 0.9 0.9 0.9 7% 6.0 5% 5% 4.0 3.6 0.5 3
Slide 19: Capital Position (2/2)
Capital Position (2/2) RHB Investment Bank RHB Capital RM bil Times 41.4% 1.4 42% 0.7 152% 149% 150% 37% 1.2 34.0% 146% 147% 31.8% 32% 0.6 0.58 29.5% 28.7% 1.0 25.2% 26.7% 0.53 0.54 0.54 27% 24.1% 23.8% 0.52 130% 0.8 21.4% 0.5 22% 17% 0.6 0.4 0.5 12% 0.4 0.4 0.4 0.4 0.4 7% 0.2 0.3 0.2 0.2 0.2 0.2 0.
Slide 20: Return to Shareholders
Return to Shareholders Market Capitalisation and Share Price Trend Dividend Trend - 2007 to 2011 30,000 10 Final Interim 8.72 7.70 21.38% 17.41% 25,000 7.48 8 17.45% 20,000 5.85 5.30 6 10.6% 18,778 15,000 3.90 16,492 16,977 3.42 4 8.6% 10,000 2.21 12,598 11,413 5,000 8,399 2 6,236 4,030 5.0% 9.0% 5.
Slide 21: Agenda
AGENDA Key Corporate Updates 1st Quarter 2012 Financial Results Key Business Highlights To Sum Up
Slide 22: Retail Business Performance
Retail Business Performance 7.3% 7.1% 7.4% 7.7% 7.3% 7.2% 18.8 20.5 20.8 16.0 6.9% 6.6% 7.4% 7.3% Mortgage 13.2 14.1 6.7% 5.7% 5.0 4.9 2007 2008 2009 2010 2011 Mar 2012 3.5 Personal 2.4 2.6 2.7 Mortgage Loans (RM bil) Market Share Use 23.8% 24.9% 15.6% 6.9 2007 2008 2009 2010 2011 Mar 2012 9.3% 6.2
Slide 23: Easy Performance
Easy Performance 245 P/Loan 236 25 23% 25 50 50 Asset Number of ASB 42 Composition Outlets 111 40 77% - Mar 2012 7 19 32 121 128 14 53 2 July 2009 Dec 2009 Dec 2010 Dec 2011 Mar 2012 Easy Standalone Tesco POS LRT 5.8% 4,1 00 4,0 50 4,0 00 3,9 50 16 0.0% 15 5.0% 3,9 00 15 0.0% 3,8 50 3,8 00 14 5.0% 3
Slide 24: Insurance Business Performance
Insurance Business Performance General Insurance - Gross Premium Bancassurance - Gross Premium RM mil 2.7% 2.7%^ RM mil 2.3% 2.3% 2.1% 1.9% 383 278 305 271 232 200 110 125 125 99 62 168 61 63 38 2007 2008 2009 2010 2011 3M 2012 2010 2011 3M 2012 ^ As at Dec 2011 Gross Premium Market Share Credit Rel
Slide 25: Domestic Market Share - CIB
Domestic Market Share - CIB YTD Mar 2012 FY 2011 FY 2010 FY 2009 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Mergers & Acquisitions 8.1% 4th 16.3% 3rd 58.8% 1st 9.0% 3rd Equities ^ nil nil 6.8% 4th 7.7% 3rd 8.9% 3rd Debt Capital Market* 14.2% 4th 9.7% 4th 9.9% 3rd# 13.2%
Slide 26: Islamic Business Performance
Islamic Business Performance Benefited from Refinement of Islamic Banking Model 16 0.0% 15 5.0% RM mil 15 0.0% 14 5.0% 14 0.0% RM mil 21 5 13 5.0% 13 0.0% 12 5.0% 12 0.0% 11 5.0% 11 0.0% 10 5.0% 16 5 10 0.0% 95 .0% 90 .0% 162 85 .0% 80 .0% 75 .0% 13,373 11 5 70 .0% PBT 211 65 .0% 60 .0% Loans 13,060
Slide 27: Agenda
AGENDA Key Corporate Updates 1st Quarter 2012 Financial Results Key Business Highlights To Sum Up
Slide 28: To Sum Up
To Sum Up 1 Cautious start to the year: Optimistic that will achieve stated targets driven by healthy loan pipeline and condusive domestic economic environment However wary of threats of slowing global economy and Eurozone spillover 2 Complete acquisition and drive integration of: OSKIB Bank
Slide 29: End
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